Monday, April 17, 2023

"Google Devising Radical Search Changes to Beat Back A.I. Rivals" (GOOG; MSFT)

From the New York Times, April 16:

The tech giant is sprinting to protect its core business with a flurry of projects, including updates to its search engine and plans for an all-new one.

Google’s employees were shocked when they learned in March that the South Korean consumer electronics giant Samsung was considering replacing Google with Microsoft’s Bing as the default search engine on its devices.

For years, Bing had been a search engine also-ran. But it became a lot more interesting to industry insiders when it recently added new artificial intelligence technology.

Google’s reaction to the Samsung threat was “panic,” according to internal messages reviewed by The New York Times. An estimated $3 billion in annual revenue was at stake with the Samsung contract. An additional $20 billion is tied to a similar Apple contract that will be up for renewal this year. A.I. competitors like the new Bing are quickly becoming the most serious threat to Google’s search business in 25 years, and in response, Google is racing to build an all-new search engine powered by the technology. It is also upgrading the existing one with A.I. features, according to internal documents reviewed by The Times.

The new features, under the project name Magi, are being created by designers, engineers and executives working in so-called sprint rooms to tweak and test the latest versions. The new search engine would offer users a far more personalized experience than the company’s current service, attempting to anticipate users’ needs.

Lara Levin, a Google spokeswoman, said in a statement that “not every brainstorm deck or product idea leads to a launch, but as we’ve said before, we’re excited about bringing new A.I.-powered features to search, and will share more details soon.”....

....MUCH MORE